Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about when adjusting too early backfires. In particular, we'll go over our XBI example. Look. I'm always a fan of being transparent and kind of talking through all of the positions and philosophies and things that we consider to be important here at Option Alpha and one thing that always is something that's difficult to do with a lot of precision I would say is adjustments. Adjustments are a tricky thing. You adjust too early and you potentially find yourself in a situation where the position backfires like what we had in XBI, but you adjust too late and the same market scenario that you thought you should adjust and you didn't because you maybe got burned before, you end up with a position that lost more money than if you were to adjust it and reduce the risk. Again, it is a fine line. There's no perfect formula for adjusting. Each style of position requires a little bit more massaging and creativity than the next, but our whole philosophy on adjusting generally is to start making adjustments slowly as we get closer to expiration. I don't think that we like and I don't think that any of our trading you would see online and in all of our public trades that we post on YouTube would show that we're overly-adjusty, meaning we don't adjust a position the moment it goes against us. We tend to wait closer to the last couple of weeks of expiration and then start slowly adjusting positions as needed. In this case, we did that with XBI. It was one of our first adjustments just the other month where we entered a position in XBI as a neutral iron butterfly. The position went against us as the market was heading lower the last couple of months and as a result, we started to get into the last couple of weeks of expiration. We went inverted on the position and started to reduce risk. Now, this was one of the first positions that we adjusted of the whole portfolio and again, the whole idea was – Okay. Well, let's start adjusting the positions that are most uniquely challenged that are really stressing us on one end of the spectrum or the other. And lo and behold as I guess luck would have it, the position turned completely back around and XBI went not only lower, but went shooting past the upper end of our range. The adjustment that we did worked for about two days and then the position went completely the other direction.

Now, full disclosure, at the time that I'm recording this podcast, we're still in the position. We rolled it to the next month for a credit and we're still in this inverted position, so we'll see what happens, but this is a great example of sometimes a position backfiring and moving against you. And so, as usual, we get a lot of emails from people saying, "Why did we adjust it too early? And if we didn't adjust it, it would've gone the other direction. It could've been profitable." Yes, 100%. This is a great example of one that could've done it, but hindsight, it's always 20/20. We adjusted one or two positions as the market was going down. I would've done the exact same thing given the exact same scenario in the future. I will do the exact same thing moving forward because I do believe that although it backfired in this instance, generally, the portfolio ended up holding up really well in the month of January and we ended up making some pretty good money in January. Even though this position so far has lost money, it's still open and working for the next expiration, but this is one of those examples where I think you slowly start to adjust because you want to leave room for the market to come back around and for some cyclicality to play itself out. And so, this is one that hindsight 20/20, it would've been easier not to adjust and we would've made more money, but we didn't know that at the time and I think at the time, we have to be cautious of reducing risk and minimizing the stress on the portfolio, minimizing the potential for drawdowns and so, that's what we tried to do. As always, hopefully this helps out kind of talking through these. If you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to answer a question which is – "What's the point of leaving out of the money options on to expire worthless?" If you've been following any of the trades that we typically like to do, we do a lot of spread type trading, whether it's iron condors, credit spreads, iron butterflies, etcetera and sometimes when we get into these positions, we will exit the positions by just simply buying back the inside strikes. For example, if we're doing an iron condor, we'll buy back the short call and the short put and we'll leave the outside out of the money options on to expire worthless. Now, why do we do this? Well, in many cases, when we do this, we're doing this when those out of the money options are not worth any value anyway. They were added as protection, they were added for a very cheap premium and they still are probably worth almost no premium at all, so it might take a little bit more time to fill if we were trying to fill all of the legs together. And if we did fill all the legs together, maybe we get a dollar's worth of value out of these out of the money options. It's just not worth a lot of premium to spend time and energy and waste an opportunity to close the inside kind of real risk of the position for a potential profit, so we'll leave these out of the money options on to expire worthless. Now, again, the point of this is that one, it's harder to fill these out of the money options as you get closer to expiration, so why would we sacrifice the rest of the position just to fill a dollar's worth of value in an out of the money option?

But the other reason that we leave them on is because I think they act as little long lottery tickets and black swan event kind of hedges. If we have a bunch of out of the money options, we close the inside strikes and then randomly, the market goes bananas, we at least have a little bit of protection on either end from these out of the money options. Now, is that always going to happen? Are we always going to have that? Highly unlikely. In fact, I think it's only really happened twice before in the last 10 years. EWZ and then I think the other one that we had was Netflix and Netflix had a huge move after we closed an earnings trade and we ended up making money on the out of the money options. But again, it's not the standard rule. It's probably the exception two. But again, it's not hurting you to leave these out of the money options on to expire worthless as part of the positions. They act as little black swan event kind of hedge protection. They don't have any value anyway, so probably in many cases, it might cost you more in commissions than the actual options have in value, so that's why we leave them on. We're not trying to play the market long. We're not expecting these huge moves in either direction. We just are trying to be very systematic and logical in how we go about closing positions for the most premium possible. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about – Can you use a stop-loss as your position-sizing metric? When a lot of people ask… And I get this question a lot is, "Kirk. If I'm getting into a trade and maybe I want to trade some particular index or product, can I just use a stop-loss order as a means to protect the position size of the portfolio?" And so, an example of this would be is if they got into a short premium trade or a credit spread trade that say had $10,000 worth of risk when you get into the position, but they might setup an automatic stop-loss to get them out of the position if the position loses $1,000 or some 2X premium or some doubling of Delta. Whatever the trigger is, they're setting up a stop-loss that is before the "real risk" of the position. And on the outside, on the surface, this seems like a good idea. I get into this position and if it goes against me, my stop-loss is there to protect me. But the problem is that when you have extremely volatile markets, you have gaps and you have black swan events and gaps can go in either direction, they don't always have to go down and black swans can have a black swan event where stocks has a huge move higher. We just saw this at the end of last year with natural gas where natural gas just went absolutely bananas and moved higher and had a black swan kind of bullish event. And because of those types of scenarios, what you end up seeing is that these stop-losses become worthless and meaningless. And so, if you're using a stop-loss as a means to position-size your portfolio, you're really asking for some bad stuff to happen to you at some point or another.

Now, we all know Murphy's Law. If something bad is bound to happen, it's potentially bound to happen to you. You're bound to trade through a bad scenario. I would highly suggest you don't use a stop-loss as your position-sizing metric because immediately overnight, what you thought was going to be capped at a $1,000 loss could turn into a $5,000 or $10,000 loss in a black swan or gapping type of event and those stop-losses give you no overnight protection for that. You basically have to be at the will of the market the next day with a market order and the bid ask spreads are wide and you're going to get terrible fills. It's all the things that we should not be doing as traders. To answer the question again, "Can you use a stop-loss as your position-sizing metric?" I highly suggest against it. I think you should use the true risk in the position for a spread. If you're doing a naked position, you should use the initial margin that's required to hold the position as a means to validate position-sizing and from there, definitely, we suggest as a broad statement not to use stop-losses in general because they do create more losing trades. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about Beta weighting after adjusting or hedging positions. This question comes in from one of our members as always and he said, "It works great assuming that you're never going to sell the inside legs of a position, potentially roll, ladder or adjust. No platform is mature enough to Beta weight after any modifications." For example, if you roll several positions that you have been laddered or adjusting into over the next month, it will skew your next month's Beta weight. Basically, how do we account for this? How do we look at and monitor Beta weighting after making adjustments? Well, I think the easiest way to do this is basically to either un-toggle or uncheck the positions that caused your portfolio to be screwed up for Beta weighting purposes. Now, the idea here is that many platforms like Thinkorswim, when you make an adjustment and you now have existing positions that are on that are post adjustment, it will show those positions as if they were a standalone. Now, in many cases, if we've rolled down a call side strike or rolled up a put side strike, this won't include the credit from rolling up or rolling down those calls. It looks like the position is actually in worse shape than it actually might be including all credits and again, this is what affects the Beta weighting of your portfolio.

What I like to do in these instances if these positions are affecting the look of the portfolio, is just quickly go into my analyze tab and toggle them on and off to see what kind of impact it has on the rest of the positions. And so, when I toggle these things off, then I have a better idea of what's left, I can deal with the individual position by itself separately, I can look at that independently, still make judgment calls on how much that individual position is going to affect the overall portfolio or not, but again, that's something that I do every week on the weekly strategy call with elite members. We go over all these positions, we toggle positions on and off, we see how they affect and how they either skew or rebalance the portfolio and again, I think it just comes with a little bit of practice and patience to go through these positions one by one. Now, hopefully you don't have too many adjustments, but you can also put them in different groups or categories. You can especially do this in Thinkorswim where you can drop a bunch of these adjusted positions into a category or a group and then when you're analyzing your portfolio, you can actually analyze non-adjusted kind of core positions and then you can separately go through and look at all the adjusted positions.

Again, it's a little bit different. There is no perfect solution for sure. You have to be a little bit creative and you have to be a little bit patient about understanding these positions and how they impact things. Still overall, your portfolio should be pretty balanced even with these adjusted positions. If they're not perfect in there, I don't think any of these things are going to skew it way out of line that you couldn't get a good handle on where your balance sits at the current moment. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about trading big stock moves with options the right way. This really comes down to what we've seen just in the last couple of months. It could be individual ticker symbols like SLV or GDX or TLT. They've had really big moves in the last couple of months.

And what people tend to default to do when they expect a big move in a stock is they tend to want to buy options and they think that buying options leads to potentially the biggest payout because they have limited risk and all this upside potential. What they fail to remember is that in all cases long-term, the buying power that options provides prices in the expected move that should happen in the stock. And so, what we see is that when stocks are about to make a big move or have already made a big move, all of that stuff is priced in and long-term, stocks underperform their expectation. Now, this doesn't mean that you couldn't find yourself in a situation where you buy an option and you make money because the stock moves more than expected. That happens all the time. But the long-term whole outcome of option buying is already pricing in the expected move. It's already pricing in the expectation that the stock is either going to make a big move or has had a big move and it usually never moves more than the expected outcome long-term.

The right way to trade big moves with options is to trade them by selling options around those big moves. Typically, we see this around earnings trades. We saw this just last year in 2018 when we actually sold a ton of naked options in UNG after a massive move in natural gas. We posted all those videos. They're all public and live on YouTube, so you can see all of our positions that we got into, but this was counterintuitive. Most people would've thought, "Why are you selling options? UNG just had this huge move. It's potentially going to make an even bigger move." But we knew that option pricing was way too expensive, had priced in a massive move that we expected not to happen long-term and we ended up trading around that situation and making some pretty good money. And so, that's the right way to trade some of these big moves, is not actually to buy strategies, but to use option selling strategies. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're finishing up our little miniseries here with options trading golden rule number 11 which is non-emotional expected outcomes. Hopefully you guys have enjoyed this little miniseries. If you are new to Option Alpha and you want to go back and re-listen to it again, I highly encourage you to do so. If you thought it was helpful, please let me know. Share it with somebody out there online. Share it with a friend, a family member, a coworker, somebody that you trade with, a trading buddy. Help spread the word about what we're trying to do here at Option Alpha. Today's rule is the most important one and I think the most important one because it ties in everything that we've talked about from position-sizing, to being a net seller of options, to understanding probabilities, not using stop-losses. All of these things that we have talked about in the previous 10 rules now kind of come to this peak, to this apex here with golden rule number 11. And what non-emotional expected outcomes means is that we should be trading a strategy that we know has a positive expected outcome. A lot of times, I see people that start trading options and they start buying options because they frankly just don't know any better. But they start buying options and buying options generally has a negative expected outcome which means that you can do it for a little while, but at some point, it's going to lose all the money in your account. You're going to lose everything that you have potentially in that account trading the same strategy over and over again.

Let's play a little game just to kind of highlight this point and just to use a little bit of an analogy. Let's say that I make $5,000 a month at my job and my expenses are $5,500. Every month, I make $5,000 and I take in income of $5,000, but I outlay $5,500. Well, I only made $5,000, so where does the other $500 go? Well, it goes on potentially a credit card let's say or let's say I borrow the money some other way. How long do you think that that cycle can continue to happen before I don't have enough money for my monthly expenses which is already happening and I start going into such severe debt that I start to go bankrupt? It's only a matter of time. The expected outcome on that type of situation when you spend more money than you earn (just to use a very simple personal finance analogy) ends up being a negative expected outcome. Yes, you can sustain yourself for a couple of months. Yes, you might have a couple of months where you reduce your expenses and you don't have to borrow on the credit card. But generally, as long as you have this negative expected outcome in your portfolio or your net worth, you're going to put yourself in a bad situation and it's just a matter of time before you end up going bankrupt. The same thought process can be applied to options trading. What I see people do all the time is they get themselves into a portfolio or a position or a strategy that has a negative expected outcome and all they're trying to do is hit a quick homerun or make a quick buck and this type of shortsighted thinking leads to a long-term life of misery and failure trading options because they don't have portfolios and strategies that have a positive expected outcome.

Now, let's say that you do have a positive expected outcome strategy. Maybe you're choosing an iron condor, iron butterfly, short strangle, credit spread option selling type strategy. This also means that you may not see profits right away. It may mean that you see potentially a couple of months of down months or a couple of flat months and you're trading everything correctly and you're doing everything the right way and you're using the right strategies and the right position size, but you're just not seeing success. That doesn't mean that the system is broken. It just means that you haven't traded enough, the numbers haven't worked themselves out in your favor yet, but they will. They will work themselves out in your favor. When you trade with a positive expected outcome, things will work out in your favor because that's how the numbers shake out. You just have to stick with the program, be persistent and consistent in using the right strategies at the right time, making sure your position size is appropriate, making sure that you're balanced, do all the things that we talked about in rules one through 10 and if you do that, you will find success and it may take a little bit more time than you expected, it may not happen initially, some people in might, but other people it might not and it may take a year or two years for you to find success in this business. Now, what we've seen and I highly encourage you to go back through the weekly podcast, show number 138 because I think that show in particular is not only one of the favorite shows that I've recorded, but also one that I think is very popular because we talk about this probability or expected probability paradox and this idea that everyone thinks options trading is a zero-sum game, but it's not. There's a lot of things that actually tilt the zero-sum game in favor of the option seller. And so, I think it's a great way to continue on this journey if you want to stop these golden rules and go to the next level and like what's the next thing. I think show number 138 on the weekly podcast is definitely one you should listen to. If you haven't already, listen to it again. But again, the whole idea here is that when we are trading, we have to be as non-emotional as possible. This means that when we take a loss, it should not really affect us and it should not stop us from trading.

Last year in 2018 during the middle summer part of 2018, we went through about a 6% drawdown in our account and a lot of people were like, "Oh, we should stop trading. These strategies now are broken. Aha! Got you, Kirk. This is a scam. I knew it. Here it is." And we just kept trading. We just kept trading through that whole situation. We kept doing the things that we know will work out in the long-term and we ended up the year positive, we ended up trading through the market decline at the end of the last quarter in 2018 by actually making money when the market was actually crashing and everyone else was losing money. We actually made money during that time period and we're going to be putting out a podcast that not only talks about that whole experience, but also shows you all of our accounts and portfolios, etcetera, so you guys can see what we were actually doing. But the whole idea and I said this back in 2018, the middle of 2018 when we're going through this drawdown, is I said, "Look. This is just fluctuation that's expected. We expect that we're not going to have a straight line portfolio and so, we got to stick with the program, we got to keep trading the same ticker symbols that we've been losing on lately because it's just a bad sequence of returns that we found ourselves in." We found ourselves in a sequence of returns that ended up being negative and that doesn't mean anything was broken. It doesn't mean that we were doing anything wrong. We just needed to keep trading through that situation as non-emotional as possible. Now, could I have thrown up my hands and said, "You know what? Forget it. I'm done." Sure. I could've done that. Could I have gone towards a more aggressive options trading strategy, so that I claw back and kind of fight back against the market because it gave me a drawdown? Sure. I could've done that. But I know intuitively now having done this for over 10 years that that's not the right way to go about it, that you have to stick with the program and sometimes as much as it hurts to just keep doing the same thing and it seems like you're not really making progress, you will be at the end of the day.

Hopefully this helps out. Hopefully again, you guys have enjoyed this little golden rules series that we did here at the beginning of the year. If you did, please let us know. Please share it. Again, give us a review and a rating. That's the best way that we get this into the hands of other traders and kind of spread the word about what we're doing here at Option Alpha. Until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about options trading golden rule number 10, adjust to reduce risk. This is one that I've had as kind of a rule for myself here for the last five or six years and it's this idea that when we make adjustments, we need to adjust to reduce risk and increase the probability of saving the position or losing less money. And this is really important because I see a lot of people are fearful of taking a loss. I don't care if I take a loss on a trade. I know that losses are part of the game. It's part of what I expect to happen every single month. I'm not going to be 100% profitable on every single trade.

But what I should do as an active trader is I should look to take trades that are going to lose money and figure out ways to lose less money and this means that sometimes we adjust positions and we roll positions in order to give ourselves more time and more premium to reduce risk. But I will never adjust a trade where I'm increasing risk in the position and this again, I think is a common mistake of many people who get started trading options or even active traders who have been doing this for a long time. They end up getting themselves into this false positive cycle of making adjustments that increase risk and when it pays off, they think that that's the right way to do it. They roll a position, widen the wings, double down on the position. They do all of these things that we know intuitively we shouldn't do, but when they actually end up being right for that instance and they end up making money, they think that's the way to go. And so, they start digging themselves into deeper and deeper holes and some time, it's going to come back around and bite them in the behind. It's going to bite them in the rear end because they're going to adjust the position and increase the risk and that's going to be the time when the market goes completely sideways or completely in the wrong direction than you thought it was going to go and you're going to have this massive loss on your hands.

Whenever you get into a position, you should know your probability of success, you should know your risk size heading into the position. Those are all controllable factors. And so, what you should do as a great trader is you should adjust to reduce risk in the process. Minimize risk as much as possible. Take a losing trade that should lose $700 and cut it down to a $500 loser. You start doing that consistently, I promise you that things will start working in your favor and you'll start seeing positive expected outcomes. As always, hopefully this helps out and until next time, happy trading.

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, we're going to be talking about options trading golden rule number nine which is reduce commissions and fees. I think generally, a lot of people when they get started in options trading and open up a brokerage account are surprised that you could actually go in and negotiate with your broker or find brokers that offer cheaper fees. Now, I publicly said a little while ago that I think all brokers at some point will be going towards a zero-commission, zero-fee structure. I think it's the inevitable trajectory of this entire market. And although we are not there yet, I think many brokers are starting to gravitate towards no commissions and no fees for trading. And so, this is good for consumers and good for traders alike because commissions and fees are a cost of doing business. Now, I tell people all the time, even though commissions and fees might seem like they hurt, it's actually just a cost of doing business and your options trading strategy should more than compensate for the commissions and cost of doing business. It should make more money than the fees included.

Now, this doesn't mean that we shouldn't actively also look to reduce our commissions and fees. This could mean renegotiating your fee structure with your brokerage which we've often done before and we've posted about on the website at Option Alpha. You can see our transcript of how we've negotiated before with our broker. And this could also mean switching to a different broker like moving to a broker like Robinhood or Tasty Trade or some of these other low commission brokers. Now, again, you just have to make sure that their accounts and their type of platform is conducive to the style of trading that you want to be active in and that has all the features and functionality that you might like. I've said before that I think you pay for what you get. Sometimes with a cheaper broker or with a no-cost broker, you get much more of the barebones type functionality that doesn't actually give you a lot of value. If you go with a more higher cost and I say "higher cost" and relatively higher cost broker, you actually get a lot more functionality, a lot more tools that might actually help you end up generating more money more so than the commissions you get charged. In either case though, you want to actively reduce your commissions, look at your commission structure, know what you're paying in fees and make sure that you have a good understanding of it as you start your trading strategy. As always, if you guys have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, we're going to be talking about options trading golden rule number eight which is ample cash reserve. This one again, is something that not a lot of people really understand and even if you understand it, you probably don't practice it and it really comes down to a simple factor of greed. A lot of people when they get started in options trading, they realize that options trading has the potential to generate money quickly for them and it's because we're using leveraged products that are leveraged against stock. And so, it's a little bit more risky, but they see a potential trade that they put $50 in generate $100 and so, now, they want to scale up and they want to throw a bunch of cash at it, but that's the wrong approach. And so, what we suggest here is that you definitely have ample cash reserves in your account. Somewhere between 50%, 60% of your account should be in cash pretty much at all times. Now, this does mean that you're going to have to leave that cash in your account sitting there earning nothing or potentially by a small ETF that's like a short-term bond ETF that pays a little bit of a dividend and doesn't really move. But the idea here is that you need to have cash reserve as a cushion and as a fallback against market volatility, black swan events and margin expansion because undoubtedly, it will happen again. What we saw at the end of 2018 will happen again and potentially even more severe in some cases or in some industries and sectors. You need to have this cash as a cushion, as a fallback to withstand these high volatility events. Even more so, the reason that we suggest having ample cash is because the math and the data suggest that when you over-allocate your account and your whole portfolio towards an option strategy, you leave yourself vulnerable and exposed to a bad sequence of returns that could cripple your account.

What do I mean by this? If you're trading 50%, 60% of your account, you could run into a situation where you actually run through a sequence of trades that end up generating losses, sometimes 15, 20 trades in a row. Now, that's not the probable high probability outcome, but it is a probable outcome. There is a potential for you to run into a position that has 15, 20 losses in a row. And so, when you have too much money allocated, that can severely impact the portfolio to the point at which it cripples it and it never recovers. What you need to do is you need to have ample cash. We suggest allocating on average during the year, somewhere between 20% and 30% of your account towards options trading strategies. And yes, that can fluctuate. Sometimes it might be lower. Sometimes it might be a little bit higher. But generally around 20% to 30% is what we've seen in back-testing and research ends up being about the sweet spot of allocation to generate returns that not only beat the markets, but are also pretty smooth and stable. And so, that's what we're all after anyway, is smooth and stable returns and this means that we have to be less greedy, we have to be more risk adverse, we have to make sure that we have ample cash reserves in our account. And again, I see this is all the time in coaching, all the time on forums, other websites, other services out there. They're suggesting way too much cash allocation and at some point, they're going to blow themselves up. It's just a matter of time. It's not a matter of when.

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, we're going to be talking about options trading golden rule number seven which is called opportunistic profit-taking. Opportunistic profit-taking is a little bit different style of trading and we've been doing this for a long time, actually before many people who are popular for talking about options trading and taking profits early actually started to come on the scene. And what we realized earlier on is that when you start taking profits early and you start being opportunistic with your trades, you actually end up reducing the volatility in your account and reducing the risk that the stock moves against you. Now, this means that sometimes you have to wait all the way until the end of expiration to take profits. Sometimes they might come early in the expiration cycle. But the reality is that rarely does holding all the way to expiration lead to the most profits. Now, what we have seen recently in our research last year which is the profit matrix, we saw that generally holding positions a little bit closer to expiration helps, just not all the way to expiration.

What we've started doing in our trading and this is a change that we made about a year and a half ago is we've started holding positions sometimes a little bit longer than our initial profit targets and we usually will do this when the position is middle-of-the-road, meaning it's right in the middle of our potential breakeven points or the range that we want it to be trading in. If it's trading in there and it hits its profit target, we might just hold it a little bit longer. Especially if our portfolio overall is pretty balanced and everything is going our way, let's squeeze a little bit more premium out of some of these positions. But again, the reality is that we don't want to be overly-aggressive with profit-taking, but we want to be opportunistic, meaning we don't need to take the first profit that we get, but when the market does move favorably, if that move happens early or later in the cycle, we want to be able to take positions off and remove the risk. Now, again, you can use our toolbox and our profit matrix software to take a look at the different strategies that end up profiting at different expiration points and when you should take those positions off based on strategy, time until expiration, implied volatility levels, etcetera. As always, if you have any questions, let me know and until next time, happy trading.